Taxes Consolidation Act 1997 Schedule 3, paragraph 12

Two or more lump sums tobe aggregated for top-slicing purposes

Paragraph 12 of Schedule 3 provided that where a taxpayer received two or more lump sum payments in the same tax year from different employments, those payments were aggregated for top-slicing relief purposes.

• Applied where two or more ex-gratia or severance payments were received in the same year of assessment
• The payments had to relate to different offices or employments
• For top-slicing purposes, the payments were treated as if they arose from a single office or employment
• The effect was that the payments were aggregated and the top-slicing calculation under paragraphs 10 and 11 was applied to the combined total